Asian markets on high as leaders congratulate French president-elect

French President elect Emmanuel Macron and his wife Brigitte Trogneux celebrate on the stage at his victory rally near the Louvre in Paris, France May 7, 2017. Source: Reuters/Christian Hartmann

55

Social Buzz

ASIAN shares have mostly gained while the euro hit a six-month high in response to the victory of centrist Emmanuel Macron over his far-right opponent Marine Le Pen in France’s presidential election on Sunday.

The Nikkei share average hit its highest level since December 2015, recording a 1.68 percent surge in share price. The ASX meanwhile was higher by 0.69 percent. The Shanghai share market decreased slightly.

Set to become France’s youngest ever president, Macron defeated Le Pen by an unexpectedly wide margin of around 20 percent – gaining 66 percent of the vote compared with just under 34 percent for the National Front candidate.

Chinese President Xi Jinping congratulated Macron on his win, expressing willingness to boost ties between the two permanent members of the UN Security Council.

Chinese state media reported that Xi said France was the first major Western country to have established diplomatic relations with communist China. Strengthening China-France relations would benefit not only either country, but global peace, stability and development, said Xi.

Japan’s Prime Minister Shinzo Abe issued an official statement which read: “the victory of President-elect Macron is a symbolic victory against inward-looking and protectionist moves and shows a vote of confidence in the EU.”

Le Pen’s nationalist campaign had threatened to withdraw Europe from the EU if elected, which would have caused further global economic uncertainty after last year’s Brexit vote.

“Political risk in Europe has been considered as a major market theme this year. But in the Netherlands (anti-EU party leader Geert) Wilders lost in March.

The French election is now out of the way,” senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Norihiro Fujito told Reuters.